[D8932AAL], Letter from Charles Batchelor to James W Gladstone, September 13th, 1889


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[D8932AAL], Letter from Charles Batchelor to James W Gladstone, September 13th, 1889

Editor's Notes

Here is my method of making up the cost of that battery. See if you can find any “bug” in it. I find that by working the plant for 40 batteries per day, the general expense is 41. I find also that the depreciation of out plant is equal to about 40 cents per battery. Of course we have to pay a royalty of $1.20. Our total labor and material is $6.83, of which only 78 cents is labor. It is, therefore, quite difficult to add on to $6.83, $4.42, which comprises the general expense, royalty etc., in such a manner that the extras such as zincs, coppers and soda will not seem to have an exorbitant price. Where our labor is so small a percentage of the total cost, I do not think it is a good plan to charge our expenses and profit as a percentage of both, as it makes those parts which can be got anywhere, exceedingly dear. I have, therefore, supposed it better to increase our labor by 400%, and charge about 15% for actual material. In that way I have made the following cost: Box complete, without zincs, coppers or soda $5.50 Oxide plates, 8lbs. at 30 cents $2.40 Zincs, 25 lbs. at 12 cents $300 Soda, 8 lbs. at 8 cents .64 $11.55 In the above price of box complete, I have charged 4 covers at 12 cents each, 48 cents, and 4 jars at 13 ¾ cents each, 55 cents. Our price List then would be : Box complete, without zincs etc. $7.46 Oxide Plates $3.28 Zincs 4.05 Soda .86 15.64 The best discount that we have given off this price before has been 10%. Now you see we could afford to give to Lippincott a price of 20% and 5%, and that would still be above the mount of our cost. I think we ought to give a general discount of 15% in some cases, and in special cases 20%, and in Lippincott’s case, 20% and 5%. Please see if you can find a “bug” in this, and let me have it tomorrow morning.







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Thomas A. Edison Papers, School of Arts and Sciences, Rutgers University
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